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Project Proposal to the Adaptation Fund

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Project Proposal to the Adaptation Fund PROJECT PROPOSAL TO THE ADAPTATION FUND PART I: PROJECT INFORMATION Project Category: Regular Country: South Africa Title of Project: Taking Adaptation to the Ground: A Small Grants Facility for Enabling Local Level Responses to Climate Change Type of Implementing Entity: National Implementing Entity: South African National Biodiversity Institute Executing Entity: SouthSouthNorth Trust Amount of Financing Requested: USD 2,442,682 Short Summary Climate change projections have indicated that both the Mopani District, in Limpopo in the north east of South Africa, and the Namakwa District, in the Northern Cape in the north west of South Africa, will be subject to increasing temperatures and changing rainfall patterns. According to local scale analysis of historical trends and future projections, there is a distinct warming trend for both Mopani and Namakwa, which will be far more severe by 2050 if global mitigation efforts are unsuccessful. Rainfall changes are much less certain, with temporal and spatial variability. Yet in historical trends there are indications of an increase in the intensity of heavy rainfall events in both areas, evident through a decrease in the number of rain days coupled with an unchanged average annual rainfall. Warming, and the associated increase in the number of extremely warm days, is set to impact evaporation rates and water availability. This is a concern as water is already scarce in Namakwa and in parts of Mopani. Greater amplitude of dry and wet spells, along with increasing temperatures, will negatively impact already stressed communities in both areas – thus rendering them more vulnerable to the impacts of climate variability and change, more specifically droughts, seasonal shifts and storm- related disaster events. Climate-related risks are generally greater for disadvantaged, rural and poor communities because of limited adaptive capacity and greater sensitivity to climate-driven impacts. Both Mopani and Namakwa Districts are characterised by the prevalence of rural, poor communities vulnerable to the impacts of climate variability and change. This threat requires climate finance for adaptation activities to find its way to these most vulnerable communities. However, such communities typically lack the capacity required to access the necessary funding. The project thus entails the implementation of a small grant finance mechanism to address this financial, capacity and adaptation need. The Community Adaptation Small Grants Facility (SGF) will increase climate resilience in rural communities and socio-economic systems in these two pilot district municipalities in South Africa, by working directly with local stakeholders and anticipated beneficiaries through a small granting mechanism. The overall goal of the project is to ensure that vulnerable, rural communities in the project target areas have reduced vulnerability and increased resilience to the anticipated impacts of climate variability and change. The objective is to incorporate climate adaptation response strategies into local practices so that assets, livelihoods and ecosystem services are protected from climate- induced risks associated with expected droughts, seasonal shifts and storm-related disaster events. The project will do so through three main components: i) providing small grants to vulnerable communities that deliver tangible and sustainable benefits; ii) empowering local institutions to identify and implement adaptation response measures; and iii) compiling and sharing lessons learned to facilitate future scaling up and replication of small grant-financing approaches. 1 The Community Adaptation SGF will be led by SouthSouthNorth (SSN) Trust, who will act as the Executing Entity (EE), and Conservation South Africa (CSA), who will act as the Facilitating Agency in the Namakwa District. The Facilitating Agency for the Mopani District is still to be selected. Table of Contents PART I: PROJECT INFORMATION ..................................................................................................... 1 Short Summary ................................................................................................................................. 1 Acronyms .......................................................................................................................................... 3 Project Background and Context: ..................................................................................................... 4 Project Objectives: .......................................................................................................................... 17 Project Components and Financing: ............................................................................................... 18 Projected Calendar: ........................................................................................................................ 19 PART II: PROJECT JUSTIFICATION ................................................................................................ 19 A. Describe the project components, particularly focusing on the concrete adaptation activities of the project, and how these activities contribute to climate resilience. ............................................ 19 B. Describe how the project provides economic, social and environmental benefits, with particular reference to the most vulnerable communities, and vulnerable groups within communities, including gender considerations. Describe how the project will avoid or mitigate negative impacts, in compliance with the Environmental and Social Policy of the Adaptation Fund. ............................. 32 C. Describe or provide an analysis of the cost-effectiveness of the proposed project. ............... 36 D. Describe how the project is consistent with national or sub-national sustainable development strategies, including, where appropriate, national or sub-national development plans, poverty reduction strategies, national communications, or national adaptation programs of action, or other relevant instruments, where they exist. ........................................................................................... 38 E. Describe how the project meets relevant national technical standards, where applicable, such as standards for environmental assessment, building codes, etc., and complies with the Environmental and Social Policy of the Adaptation Fund. .............................................................. 39 F. Describe if there is duplication of project with other funding sources, if any. ......................... 40 G. If applicable, describe the learning and knowledge management component to capture and disseminate lessons learned. .......................................................................................................... 44 H. Describe the consultative process, including the list of stakeholders consulted, undertaken during project preparation, with particular reference to vulnerable groups, including gender considerations, in compliance with the Environmental and Social Policy of the Adaptation Fund. 44 I. Provide justification for funding requested, focusing on the full cost of adaptation reasoning.50 J. Describe how the sustainability of the project outcomes has been taken into account when designing the project. ...................................................................................................................... 52 K. Provide an overview of the environmental and social impacts and risks identified as being relevant to the project. ..................................................................................................................... 53 PART III: IMPLEMENTATION ARRANGEMENTS ............................................................................ 55 A. Describe the arrangements for project implementation. ......................................................... 55 B. Describe the measures for financial and project risk management. ....................................... 60 C. Describe the measures for environmental and social risk management, in line with the Environmental and Social Policy of the Adaptation Fund. .............................................................. 62 D. Describe the monitoring and evaluation arrangements and provide a budgeted M&E plan. 62 E. Include a results framework for the project, including milestones, targets and indicators. ..... 66 F. Demonstrate how the project aligns with the Results Framework of the Adaptation Fund .... 69 G. Include a detailed budget with budget notes, a budget on the Implementing Entity management fee use, and an explanation and a breakdown of the execution costs. .................... 71 H. Include a disbursement schedule with time-bound milestones. .............................................. 74 PART IV: ENDORSEMENT BY GOVERNMENT AND CERTIFICATION BY THE IMPLEMENTING ENTITY ................................................................................................................................................ 75 ANNEXES ....................................................................................................................................... 76 2 Acronyms African Climate and Development ACDI LAMOSA Land Access Movement of South Africa Initiative Limpopo Department of Economic AF Adaptation Fund LEDET Development, Environment and Tourism Association of Limpopo Early Childhood Limpopo Organic Farmers & Excillie Co- ALERT LIOFA Development Resource & Training operative Association for Water and Rural
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